.CelsiusNetwork is reportedly floating a plan to turn its $5 billion in debt into crypto “IOU” tokens. cheyenneligon reports
Tiffany Fong – indicates that Celsius is considering another, alternative method for repaying customers: wrapping the Bitcoin, Ether and USDC it owes customers into a token that, as Celsius co-founder and CTO Nuke Goldstein explains, “represents the ratio between how much we really owe and how much we really have.”
Customers could then either redeem the wrapped “IOU tokens” , trade them on the open market, or hold them to speculate on Celsius’ potential recovery in the long term.shared by Fong, Celsius executives told employees at an all-hands meeting on Sept. 8 that Celsius’ CEO Alex Mashinsky had already shared the plan to issue the IOU tokens with the unsecured creditors committee , who met the proposal with “positive feedback.
“This is really how we resolve this, how we get out,” Oren Blonstein, Celsius’ chief compliance officer, told employees at the meeting. “What we do in this pivotal moment can be through unprecedented, really innovative solutions and this [plan] is one of them.”Liquidity-strapped Chinese mining pool operator Poolin
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